ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif has formed a committee to identify shortcomings and deficiencies in the Track and Trace System (TTS), aimed at combating tax evasion and enhancing revenue collection.
Led by former State Bank Governor Tariq Bajwa, the committee has been tasked with conducting a comprehensive investigation and presenting its findings to PM Shehbaz Sharif.
The Track and Trace System (TTS) is a software-driven solution designed to monitor vehicles, loading units, shipments, and products across the entire supply chain, from supplier to consumer.
Initially implemented in 2021 within the cigarette industry, the TTS was subsequently extended to the sugar, cement, and fertilizer sectors through a bidding process overseen by the Federal Board of Revenue (FBR). This decision follows the system’s failure to meet anticipated targets.
Previously, it was reported that the government’s Tajir Dost tax scheme, aimed at bringing retailers into the tax net, had also encountered challenges in garnering support from the business community.
Launched to tax retailers nationwide, the Tajir Dost app sought to include 3.5 million retailers in the tax net. Initially introduced for traders in Karachi, Lahore, Peshawar, Rawalpindi, Quetta, and Islamabad, the scheme proposes a monthly income tax of Rs1,200 for retailers and small-scale traders, effective from July 15, 2024. Additionally, traders stand to benefit from a 25% discount on annual income tax payments under this initiative.
